Multiple people at the Yahoo vacation rental board have been audited by the IRS and told they need to file a schedule C rather than E for their vacation rental. This of course also means needing to pay social security, as it would be qualified as a business.

With the surge of vacation rentals, the IRS seems to be taking notice of the industry as a way to increase revenue. If I were you I would talk to a tax adviser about this before deciding to take the plunge, if tax purposes are a major motivator in the purchase.

HomeAway has also been on the boards a lot. There is a lot of dissatisfaction lately, and they have been losing long term customers. How would you rent it out if you did not advertise there? For most rentals, all it would take is renting it one extra week to pay the fee and take home a bit more. Are you looking to have someone manage it for you? That may be an issue with it being qualified as active.